With the draft laws for Islamic banking almost complete, Oman will also alter its existing regulations for banking in the Sultanate to incorporate Islamic finance.

H.E. Hamood Sangour al Zadjali, Executive President of the Central Bank of Oman, revealed to the Oman-based newspaper Muscat Daily that the first draft of Islamic banking rules is almost ready and it is being updated with comments from local banks.

He told the paper: "The first draft is almost complete and we have discussed it with representatives of banks. We have received some feedback and comments from the banks about new rules and are incorporating them as much as possible in the draft regulations."

Zadjali added that the Central Bank of Oman is awaiting official legislation on Islamic banking to issue the final regulations. "There will be an amendment to the banking law which will incorporate Islamic finance and banking activities. However, I am not sure about the timing as it depends upon the decree for amendment. But we expect it to be ready within the second quarter of this year," he told Muscat Daily.